Former Gov. Dave Heineman approved a Nebraska route for Keystone XL in 2013 after a review by the state Department of Environmental Quality. But the 2012 law that gave him the power to do so has been challenged by landowners in court, preventing the project from moving forward within the state.
Both North Dakota senators, Democrat Heidi Heitkamp and Republican John Hoeven, criticized the Obama administration’s long delay in approving the pipeline.
Hoeven said it’s “clear” that the administration intends to deny the pipeline permit, which he claimed would have “a chilling effect on the willingness of other companies to invest in important energy infrastructure projects in the United States.”
TransCanada announced the project in 2008, which has undergone repeated federal and state reviews. The pipeline would be built from Canada through Montana, South Dakota and Nebraska, where it would connect with existing pipelines to carry more than 800,000 barrels of crude oil a day to refineries along the Texas Gulf Coast.
Delays in approving the pipeline have caused friction between the U.S. and the outgoing Canadian Conservative government of Prime Minister Stephen Harper. Harper was frustrated by Obama’s reluctance to approve the pipeline and the issue damaged U.S-Canada relations. Although incoming Liberal Prime Minister Justin Trudeau, who is sworn in Wednesday, supports Keystone, he argues relations with the U.S. should not hinge on the project.
Canada needs infrastructure in place to export its growing oil sands production. Canada relies on the U.S. for 97 percent of its energy exports. Alberta has the world’s third largest oil reserves, with 170 billion barrels of proven reserves. But a sharp decline in the price of oil makes many of the new oil sands projects less viable.
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